Chevron has reportedly signed a preliminary deal to sell natural gas fields in Bangladesh to a China-based oil firm.
Sources told Reuters that Zhenhua Oil inked a preliminary deal with Chevron to buy the company’s natural gas fields in Bangladesh.
Two Beijing-based oil executives told Reuters that the deal is worth about $2 billion.
Zhenhua will reportedly partner with China Reform Holdings Corp. on the deal, Reuters said.
Zhenhua is a subsidiary of NORINCO, a defense-focused conglomerate that manufactures vehicles, machinery and oil field equipment.
Chevron told Reuters that it is in commercial discussions related to its Bangladesh assets but did not disclose further details.
According to Reuters, Bangladesh holds a first right of refusal for the fields and may be interested in acquiring the assets.
Bangladesh’s state minister for power, energy and mineral resources Nasrul Hamid told Reuters that his country will make a formal offer “only if the project is viable.”
Through its subsidiaries, Chevron operates three fields in Bagneldeash: Bibiyana, Jalalabad and Moulavi Bazar.
Those fields are operated under a production-sharing contracts signed with the Government of the People’s Republic of Bangladesh, represented by the Ministry of Energy and Mineral Resources and Bangladesh, Oil, Gas & Mineral Corporation (Petrobangla).
In 2015, the company’s net daily production in Bangladesh averaged 720 million cubic feet of natural gas and 3,000 barrels of condensate.